The IMF's quest for another $500 billion in lending resources managed to boost the euro for a second day this morning and lifted gold prices to five-week highs around the $1,670 resistance area before momentum waned.
The trading environment remained thin and bereft of much energy as the abbreviated market week reopened for business in New York this morning. Overnight, gold breached the pivotal $1,600 mark once again and fell to lows near $1,590.
The midweek trading session in New York opened with losses in all metals but gold this morning as the white and noble metals sank and the yellow one attempted to regain some lost footing in the wake of a further easing in the US dollar.
Tuesday's trading action in New York opened on a slightly defensive note following an overnight interest rate hike by the Chinese central bank and a half-dollar drop in crude oil. Spot gold dealings opened with a small, $0.90 per ounce loss.